Mercado Minerals Signs LOI to Acquire La Franca Concession

Mercado Minerals Ltd, a silver-focused exploration company, has taken a significant step towards expanding its presence in Mexico’s Western Silver Belt. The Vancouver-based firm has signed a Letter of Intent (LOI) to acquire the La Franca concession, which is surrounded by the Campanillas concession on the Zamora project in Sinaloa, Mexico.

Under the terms of the LOI, Mercado can earn a 100% interest in La Franca through staged option payments totaling US$600,000 over three years. The first payment of US$100,000 is due upon signing, followed by three payments of US$33,333.33 each at four, eight, and twelve months after signing. A further US$200,000 is due on the second anniversary, and another US$200,000 on the third anniversary. The concession remains subject to a 2% Net Smelter Return Royalty (NSR), which Mercado has the right to buy back in full for US$500,000.

The acquisition of La Franca, combined with the Campanillas concession, unlocks 750 metres of mineralized veining that has never been drill tested. High-grade silver and gold surface chip sampling results from La Franca have returned multiple high-grade intervals, including 1.00 metre of 1.53 kg/t silver and 1.39 g/t gold (1501 g/t AgEq1) and 0.80 metre of 534 g/t silver and 3.58 g/t gold (757 g/t AgEq).

The 2026 chip sampling from the La Franca segment of the vein returned 1.00 metre of 1530 g/t silver and 1.39 g/t gold (1501 g/t AgEq) and 0.80 metre of 534 g/t silver and 3.58 g/t gold (757 g/t AgEq). Additionally, 3.00 metres (true width) of 229 g/t silver, and 1.12 g/t gold (295 g/t AgEq) were also reported. Historic samples from the La Franca segment of the vein returned 1,720 g/t silver and 12.96 g/t gold (2,530 AgEq) in a stope wallrock grab sample and 460 g/t silver and 2.90 g/t gold (634 AgEq) in a 42 kg blended underground grab sample.

CEO Daniel Rodriguez commented, "The 2026 results at La Franca, together with the historical data, confirm why we want to acquire the concession. Consolidating La Franca with the Campanillas segment of the vein gives us 750 metres of combined vein strike extent of high-grade silver and gold mineralization at Zamora that has never been drill tested, including multiple results exceeding one kilogram per tonne in silver. Our team's field mapping and sampling have built the confidence to move forward with permitting and advancing Mercado's inaugural diamond drill program to test this vein system and unlock its full potential."

The technical information and data for the Zamora property appear to be of a good standard. However, the Qualified Person (QP) has not conducted sufficient work to independently validate the assay rock sample results from Zamora. Therefore, the Company is treating the Zamora results as historical in nature and are not to be relied on. The QP will independently verify results of the historic work during a site visit later this year.

Mercado Minerals Ltd is committed to creating shareholder value through disciplined exploration, strategic growth, and discovery-driven results. The company intends to initiate the process to apply for permits to drill test Campanillas - La Franca immediately.